An Innovative Solution to Budgeting: Cut Deficits AND Grow the Economy

The main economic theories in the budget debate don’t diagnose the problem correctly and prescribe the wrong solutions. To effectively reduce the deficit and promote economic development we need to focus on growth inducing investments, such as R&D and STEM education, reforms that increase incentives for domestic business investment, including cutting corporate taxes, and policy changes that ensure people work longer, such as raising the retirement age.